On May 17, 2023,Philippine Business Bank, Inc., in its regular board meeting, approved the revision of its dividend policy from: Pay-out of 20% to 30% of Bank's annual net income on condition that the Bank is well compliant with the existing regulatory requirements for the capitalization under its approved license and the minimum Capital Adequacy Ratio (CAR). This particular policy does not in any way preclude the Bank from declaring stock and cash dividends as the board deems proper. To: PBB, as a matter of policy, will declare dividends either in the form of cash or stock dividends, or a combination of both at a payout ratio generally not exceeding 30% of the net income of the prior year, subject to the conditions and limitations set forth in this policy statement.

Dividend pay-outs are reviewed annually. Dividend pay-out are calibrated based on the prior year's earnings while taking into consideration dividend yields, future earnings streams, and future business opportunities. PBB is driven by the following primary objectives: Maintaining healthy capital ratios to support its business.

Ensuring compliance with externally imposed regulatory capital requirements and liquidity requirements. Maintaining strong credit ratings. In declaring dividend pay-outs, PBB considers the following: The dividend is increased in response to the Bank's achieving a higher level of sustainable earnings.

Dividends may be increased for a specific year to plow back to shareholders a commensurate share of unusually high earnings for a given year.